When hospitals share risk with HMOs...

September 1, 1997

Spreading the risk is a big part of managed care, and hospitals that have chosen to share risk are generally profiting from the arrangements, according to a new survey by Deloitte & Touche's Integrated Health Group.

"Of the hospitals that were engaged in risk-sharing arrangements, more than half had surpluses," said Jim Scearcy, a principal in the firm and leader of its health actuarial practice. Of the 261 hospitals (almost exclusively not-for-profit) that responded, 45 percent had some type of risk sharing, including Medicaid or Medicare contracting.